Stocks extended the gaining streak on Sunday as enthusiastic investors continued their buying binge on sector-wise issues riding on regulatory moves to restore discipline in the country’s capital market.
DSEX, the prime index of the DSE, went up by 20.74 points or 0.42 per cent to settle at 4,948, which is the highest level of DSEX in 11 months since October 1, 2019.
Market analysts said active presence of the bargain hunters, lower returns on the money market, lucrative price level of listed securities and strong regulatory actions against wrongdoers continued to attract investors to put fresh funds on stocks.
The stock market regulator has taken a number of initiatives including restructuring the boards of ‘Z’ category companies for bringing positive changes in their operations, changed the definition of ‘Z’ category to ensure accountability of the companies and reduced the trading cycle to T+3 from T+9.
The securities regulator also asked 22 ‘Z’ category companies, out of 42, to submit proposals with appropriate business plans for improving operational and financial performances to exit the junk category.
The Bangladesh Securities and Exchange Commission has warned to take actions against the ruomor-mongers under the Digital Security Act.
Following such regulatory moves, the enthusiastic investors continued to show their buying appetite, especially for large-cap stocks, amid growing confidence on the market, said a merchant banker.
The DS30 index, comprising blue chips, also advanced 1.42 points to finish at 1,716. However, the DSE Shariah Index saw a fractional loss of 0.78 point to close at 1,141.
Turnover, a crucial indicator of the market, stood at Tk 10.94 billion on the country’s premier bourse, which was 6.0 per cent lower than the previous day’s turnover of Tk 10.94 billion.
Gainers outnumbered the losers, as out of 350 issues traded, 175 closed higher, 141 ended lower while 34 issues remained unchanged on the DSE floor.
A total number of 290,065 trades were executed in the day’s trading session with a trading volume of 354.60 million shares and mutual fund units.
The market-cap on the premier bourse also rose to Tk 3,730 billion on Sunday, from Tk 3,725 billion in the previous session.
The pharmaceuticals sector continued to dominate the turnover chart with Orion Pharma topped the turnover chart with shares worth Tk 611 million changing hands, followed by Beximco Pharma, Brac Bank, Beximco and Delta Brac Housing and Finance.
SS Steel was the best performer, posting a gain of 10 per cent while Emerald Oil Industries was the worst loser, losing 7.40 per cent.
The Chittagong Stock Exchange also edged higher with its All Shares Price Index (CASPI)—gaining 47 points to close at 14,113.
Of the issues traded, 142 gained, 93 declined and 27 remained unchanged on the CSE.
The port city bourse traded 13.63 million shares and mutual fund units with turnover value of Tk 281 million.